Steemit Crypto Academy Season 4 - Homework Post for Task 7

Explain in your own words what an Exchange is. Differences between a Wallet and an Exchange. Mention the advantages and disadvantages of DEX and CEX. Have you used an Exchange before? tell us about your experience.

Explain in your own words what an Exchange is.

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The basic meaning of exchange is give something to someone and take something else in return this is the basic meaning and in the digital or cryptocurrency market exchange is it allow people to exchange their digital assets like you buy some bitcoin in the low price and you wait until the price of your bitcoin is increase and then you sell it in high price and after someone buy your bitcoin in low price and then he also wait until the price of bitcoin is increase .

I know about two exchanges the first is Centralized and another one is Decentralized.

Differences between a Wallet and an Exchange.

Wallet

• In wallet that allows you save your all information.

• In wallet you access your tokens at any time.

• In this we get a two types of key first is private and another one is public key.

• It is Decentralized.

Exchange

• In exchange I can't save your all information you sell your bitcoin and you can't save them.

• You buy and sell crypto.

• This is centralized and also a Decentralized.

• In this we choose key freely.

Mention the advantages and disadvantages of DEX and CEX.

After my previous now I tell about the advantages and disadvantages of DEX and CEX.

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Advantages of Decentralized

• In this we have a low risk because using Blockchain technology we have lower risk of hack as compared to the centralised.

• In the Decentralized system it provides a trustless environment which means you can't trust anyone.

• Decentralized can't show the information and location of it's user.

• The Decentralized is not operate by single person it required more people's to operate.

Disadvantages of Decentralized

• In this user have their own private key

• If user lost his or her account password then the account will not come no have to complain.

• No one know about this platform.

Advantages of Centralized

• In the centralized platform user not have their private keys which means they all have their trust on exchange operators.

• In the centralized the transaction made so faster and it is easy to use all people are use it very easily.

• If your account is lost you easily recover it with the help of KYC.

Disadvantages of Centralized

• The centralized is costly the charges of centralized is always high.

• This is not proper secure this have high risk of hack.

• This is risky because they have your all information about your fund that's why this is risky.

Have you used an Exchange before?

Yes I use huobi exchange this is a good app and it have a all coins and it easy to use I also use this.

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Conclusion

Today I learnt about exchange, wallet, Decentralized and centralised and I am glad to answer these questions and good lecture by professor @imagen and thank you professor for this beautiful lecture.